Payroll and Benefits Guide - Ireland

Ireland
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Currency

Euro
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Capital

Dublin
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Employer Taxes

8.80% – 11.05%
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Date Format

dd/mm/yyyy
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Fiscal Year

1 Jan – 31 Dec

Fun Facts

Sean’s Bar in Athlone, Ireland, has been serving customers since 900 A.D. and may be the oldest pub in the entire world.

Ireland is the only nation in the world to have a musical instrument as its national symbol, the harp.

The Great Famine of the 1840s left Ireland’s population in a state of persistent malnutrition. Currently, there are about 6.8 million.

Belfast was the site of the tragic RMS Titanic’s construction.

More than 30,000 castles and ruin sites may be found throughout the country.

The renowned alcohol brand, Guinness, originated from Dublin.

Ireland

Contributions

Employee Payroll Tax

Contribution TypeRate
Universal Social Charge0.50% – 11.00%
Social Security PRSI4.00%

Employer Payroll Tax

Contribution TypeRate
Social Security8.80% – 11.05%

Payroll

Payroll Cycle

Salary payments are made either weekly or monthly and should be done on the last day of the month.

13th Salary

There are no legal requirements regarding 13 month salaries.

Work Hours and Week

39 hours make up a full-time work week. Employers are in charge of making sure that workers receive enough rest. Over the course of four months, a work week cannot be longer than 48 hours. Additionally, workers must receive 24 straight hours of rest in any span of seven days.

This should often come after one of the 11-hour rest periods. If a week comes after one in which an employee did not receive any 24-hour rest periods, your employer may instead provide two of them. Unless otherwise specified in the contract, the 24-hour rest period shall include Sunday.

Overtime

There are no laws regarding overtime and is decided by employment contracts.

Many employers provide their workers increased rates of pay for working overtime.

Particular industries of work pay overtime rates that are greater than standard hourly rates. Employment regulatory orders and registered employment agreements cover this.

Ireland

Leave

Paid Time Off

Legislation and the employment contract both outline an employee’s rights to yearly leave and paid holidays.

The law sets a minimum need for annual paid leave of four weeks (20 working days).However, an employee’s contract may set a higher standard. The entitlement for part-time employees is 8.0% of the hours worked, up to a maximum of four working weeks each leave year.

Public Holidays

There are 10 public holidays in Ireland.

Sick Days

As of the first of January 2023, Irish legislation currently specifies that employees have the right to 3 days of sick pay annually beginning on the first day of sickness, under the condition that a medical certificate is given by the fourth day of illness.

  • It is possible to use consecutive or non-consecutive sick days.
  • It will be paid at a maximum of €110 per day, which is calculated at 70% of regular pay.
  • A worker must have been employed for at least 13 weeks in order to be entitled for this benefit.

Companies have the option of providing more generous sick leave policies.

Maternity Leave

Given the expecting mother has sufficiently contributed to social insurance or PRSI, they are entitled to maternity leave. The usual maternity rate is 262.00 Euros.

Mothers are given to 26 weeks (156 days) of paid maternity leave, and they are also eligible for an additional 16 weeks of unpaid leave that starts as soon as the paid period ends. Mothers must take a leave of at least two weeks before and four weeks after the due date.

Paternity Leave

In the first six months following a child’s birth, or placement in the case of an adoption, fathers are entitled to seven weeks of paid leave as long as they have contributed to social insurance or PRSI.

Parental Leave

Parent’s regular leave will be increased from 5 to 7 weeks and is now open to anyone with a child under 2 or who adopted a child within the last 2 years.

Additionally, for each qualifying child under the age of 12, parents are entitled to up to 26 weeks of unpaid leave. The employee must have been working for the employer for at least one year and submit a written parental leave request to the employer at least six weeks before the requested start date in order to be eligible for the leave.

An adoptive parent may take up to 24 weeks of unpaid leave under the terms of the adoption leave policy, starting on the day the kid is put in their care.

Other Leave(s)

In the case of a family death, an employer may allow three days paid leave to their employees.

If chosen as a juror, an employee must be given unpaid leave for the legal proceedings.

Termination

Termination Process

A fix-term contract may be terminated by the employer for any of the following reasons: business, personal, or employee misconduct. It warrants notice and a justification for the termination in writing. If the reason is misconduct, the employee must be given a warning and an opportunity to defend their actions.

Employees are entitled to any unpaid wages and a payslip upon termination of service.

Notice Period

The notice time is determined by the length of work in accordance with the conditions of the contract.

Both the employer and the employee must provide the following notice:

  • 13 weeks to two years are given a week
  • two to five years are given two weeks
  • five to ten years are given four weeks
  • ten to fifteen years are given six weeks
  • fifteen years are given eight weeks

However, payment equal to the length of notice could be given instead.

Severance Pay

Only employees with two years of service who are laid off are eligible for severance compensation, which is calculated as two weeks of pay for each year of service plus one further week of pay. The weekly pay is capped at EUR 600. Usually, other benefits are also given.

Probation Period

Probation Period

The typical probationary period is 3 to 11 months, but it cannot be longer than 12 months.

Immigration

Non-European nationals must apply for and pay for a work permit or green card which lasts up to 2 years, but European citizens can seek employment without a work permit.

If their pay exceeds a specific amount, foreign workers in Ireland are required to have a valid work visa and are subject to Irish taxation on their cumulative income.

VAT

The country has a usual VAT rate of 23% and four other tiers such as 0%, 4.80%, 9.00%, and 13.5%.